The Slatington Borough Council met Monday night to discuss the proposed budget for 2021. The budget revealed a shortfall of about $68,000.

As a consequence of the shortfall, the council approved raising taxes 0.350 mills in a 6-1 vote in the preliminary budget. This will bring the millage to 5.65 mills.

Council member Jason Ruff voted against the increase.

“I just don’t think this is the year to raise taxes,” he said.

The last substantial tax increase (1.5 mills) in Slatington was in 2011. Since then, there was a 0.5-mill increase in 2012, 0.25-mill in 2014, and a 0.05-mill hike in 2018. No increases were implemented in 2013, 2015, 2016, 2017 and 2019.

If the increase is approved in the final budget, it would be split up with 0.325 mills going to the general fund and 0.025 mills to the fire fund to help the fire department cover the costs of building repairs and equipment. The increase would bring in an additional $4,300 to the fire department, which has a total budget of $90,575.

Borough Manager Dan Stevens said the council knew a tax increase was in the near future this time last year. The 2020 budget squeaked through with only a surplus of $300. Increasing costs in health care, salaries and other budgetary needs made the gap this year inevitable.

“There wasn’t much of a way to get around it,” he said. “Everything keeps going up.”

For 2020, health care costs went up 8.5%, and the borough covered it out of the general fund. But for 2021, health care costs are projected to increase 14.3%. That’s a 23% increase in two years, he said.

Stevens said the large increase is being blamed on COVID-19, but all he knows is the costs are going up. The borough is a member of the Pennsylvania Municipal Health Insurance Cooperative, which was established in 2006 to help municipalities reduce their health care costs.

This borough’s tax increase is expected to add about $52 to the average tax bill, he said. It will generate a total of $56,225, but the borough is still $12,000 short.

Stevens said there are a couple areas that could bring in additional revenue, such as renting the empty office space in the municipal building. Whatever is left will be covered by the general fund.

There will be no increases in water, sewer and garbage fees. Council President Bryan Reed said that Slatington has the lowest water bill in the region.

Stevens also pointed out that the garbage bill was actually reduced twice in recent years, bringing it down from $66.25 to $50.50.

Police

The council decided to increase the budget for the police department by $9,000, following a request by Police Chief David Rachman.

Rachman said the department is in need of additional full-time and part-time officers. He would like to hire three additional full-time officers over the next three years and asked for an increase in pay for the part-time officers.

The current pay for part-time officers is $19 hour.

“You can drive to the Home Depot warehouse in Breinigsville and make $19 an hour, not being a police officer, not having six months of training, not having to putting your life on the line, not working weekends and holidays, not working nights, and not taking the risks that you do civil and personal,” he said.

The borough hasn’t increased the wages since 2013, and Rachman said that Slatington is one of the lowest paying municipalities in the area. He listed several that are $21 per hour or more.

“We absolutely need to raise our part-time wage,” he said.

Rachman said it’s costly to continually hire officers, provide them with uniforms and training, and then they leave for better paying jobs. Couple that with the number of people training to become a police officer is dropping and it makes it very difficult for him to attract quality candidates to the borough,

Rachman said the increase in pay doesn’t have to be effective as of Jan. 1, if that would bring down the cost enough to make it possible in the budget.

The council decided to approve a $2 increase per hour that would become effective on April 1, if the final budget is approved.

Moving the effective date saves the borough $3,000. Otherwise, they would be adding $12,000 with an effective date of Jan. 1, instead of $9,000.

The total budgeted for the police department is $880,646. This covers wages, benefits, equipment, vehicles and all related expenses.